5 Reasons a Life Tenancy Investment is Better Than a Buy to Let Project

There is an abundance of off-plan property projects in the UK to choose from. What we offer to the market is Life Tenancy Investments and here are 5 reasons why believe they trump off-plan projects:

1. Lower Entry Price

Because of the unique way an LTI works, you could be paying up to 60% less for a property than it’s value. You could argue that with buy to let you have the option of a mortgage and so only paying the deposit, but for non-residents of the UK, deposits are far higher and certainly comparable to the lower end of LTIs.

2. Much Less Risk

With off-plan projects, investors can benefit from a discount by taking on a lot of risk. But with LTI you get the huge discount but it’s always on an existing structure thus there is no risk for it not being completed. Take a look at the case of the Angelgate development for reference: https://www.manchestereveningnews.co.uk/news/greater-manchester-news/angelgate-serious-fraud-office-investigation-15693360

3. No Stamp Duty Surcharge

This is where investors can save a lot of money. When the government introduced the Stamp Duty Surcharge for secondary homes this added quite a barrier to investors adding 3% tax onto the base rate of a property purchase. Fortunately for Life Tenancy Investors and the unique way our lease agreements are set up, LTIs are exempt from the surcharge. Also because, you are purchasing for half the price, most of the time you are buying the property below the threshold resulting in no stamp duty at all.

4. No Maintenance or Letting Fees

Letting agents typically charge between 8% and 12% to keep a buy to let property tenanted. Though this is justified by the hard work they put in, it’s still money that is not making it into your pocket. Because with a life tenancy there is only one tenant for the term you don’t need to use letting agents thus you don’t need to pay their fees.

When it comes to maintenance, this is something that really eats into investor’s profits in a buy to let environment. But with our Life Tenancy Investment contracts it’s actually the tenant that is responsible for all the maintenance and upkeep of the properties.

5. No drama.

Agents selling buy to let projects like to boast that their project is an ‘armchair investment’ but the reality is there is always input from the investor in various ways. However with a Life Tenancy Investment, you’re acting more like bank and just helping the tenants secure a home and profiting long term.